As a company, AMC has also been able to capitalize on the Mem stock craze as shareholders have propelled the stock to new heights.
AMC chief Adam Aaron says he has a surprise waiting for his investors, but he wouldn’t say what it is.
In an interview at the Milken Global Conference, Aaron first told Granthshala Business that the world’s largest move theater chain would soon undergo a meaningful change in its business model. He declined to go into details, but did say that the change would emphasize moving the company in a new direction.
AMC is one of those meme stocks that’s been responsible for spurring small investor interest during the pandemic, driving shares to significant highs over the past year, even as the company has billions of dollars in debt and is losing money. continues. AMC’s problems began pre-pandemic with the rise of streaming services like Netflix and HBO, which has led to people watching movies at home instead of going to theaters. The company was further slammed during the COVID-19 pandemic when theaters were forced to close. However, Aaron, the former CEO of Norwegian Cruise Lines and the Philadelphia 76ers basketball team, has earned the respect of Wall Street for his innovative approach to managing the company despite these obstacles.
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Under Aaron, AMC now offers viewing of sporting events, will soon accept cryptocurrencies as payment for tickets and refreshments, and even launched its first national advertising campaign, putting AMC back on the map . In recent weeks, the reopening of the pandemic and the release of several blockbuster films has led to an increase in film attendance across the US.
As a company, AMC has been able to capitalize on the meme stock craze as shareholders have propelled the stock to new highs, but some analysts are still skeptical. Rich Greenfield of Lightshade Partners even valued a cent on the stock.
Aaron did not comment on the company’s share price, but believes that upcoming business model changes will benefit AMC shareholders in the long run and good things are coming for the company.
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“People forget (Amazon founder Jeff) Bezos was once criticized for buying an online portal to buy books,” Aaron said. “They innovate and see where Amazon is today. We hope to go in that direction.”